LOCAL GOVERNMENT COMMISSION AGENDA April 2, 2019

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1 1. PLEDGE OF ALLEGIANCE PRELIMINARY RELATED INFORMATION 2. TOAST TO THE FLAG Approximate Capita Debt 04/01/19 3. CONFLICT OF INTEREST STATEMENT State: $ 485 Federal: $67, MINUTES FOR APPROVAL March 5, 2019 Unit Page Last request Voted/ Type Purpose Amount Comments Number to Borrow Non-Voted Gaston, County of Financing Agreement Limited Obligation $ 32,000,000 Unit Letter GO $250M Mount Holly, City of Annexation Misc. - Action $ 60,000 Unit Letter IP $8.66M Reidsville, City of Revolving Loan Sewer $ 3,963,089 Unit Letter IP $6.0M Rowan, County of Financing Agreement Schools $ 1,300,000 Unit Letter FA $27.5M White Lake, Town of Revolving Loan Sewer $ 2,037,546 Unit Letter IP $675K Alamance Community College Financing Agreement Guaranteed Energy Savings Contract $ 2,512,283 NA Caldwell, County of Financing Agreement Schools $ 12,300,000 FA 4/2017 $25M Charlotte, City of Financing Agreement Limited Obligation $ 142,500,000 RB $100M High Point, City of Financing Agreement Equipment, Public Vehicles $ 7,000,000 GO $6.6M King, City of Financing Agreement Refinancing Belt Ffilter Press Loan $ 1,038,266 FA K Lincoln, County of Financing Agreement Municipal Bldgs, Solid Waste $ 11,500,000 RB $14,9M Raeford, City of Financing Agreement Water $ 1,300,000 Unit Letter RL $1.25M Surry, County of Financing Agreement Limited Obligation $ 26,000,000 FA $6.6M Wake Forest, Town of Financing Agreement Streetscape Improvements project $ 5,500,000 FA $3.5M Whispering Pines, Village of Financing Agreement Spillway Rehab./Fire Station Renovation $ 2,500,000 FA $312K Cedar Point, Town of General Obligation Park Land Acquisition $ 2,250,000 GO $2.5M Voted Fayetteville, City of General Obligation Refunding $ 2,600,000 GO $ $6.6M Non-Voted Fuquay-Varina, Town of General Obligation Refunding $ 3,650,000 GO $51.9M Non-Voted City of Charlotte Housing Authority Revenue Multifamily Housing $ 18,000,000 RB $18M State of North Carolina Revenue Grant Anticipation Revenue Vehicle $ 600,000,000 RB $223.5M Boonville, Town of Revolving Loan Water $ 796,000 RL $1.17M City of Goldsboro Revolving Loan Water $ 1,797,360 RL $2.6M Rhodhiss, Town of Revolving Loan Sewer $ 100,000 RL $189K Stantonsburg, Town of Revolving Loan Water $ 310,000 RL $1.6M Town of Dublin MISC. Sewer $ 111,344 RL $75K Lillington, Town of Modification - Extension of term Misc. - Action $ 1,503,784 IP $2.6M Healthcare Facilities Financing Discussion Informational

2 UNITS WITH AUDIT LETTERS PAGE 2 OF 17 NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY GASTON COUNTY (1) Construction of a jail infill project to increase the Necessary and Bid is in hand for the The County received a unit letter because of a No tax increase is Structure: Annual principal and interest $32,000,000 number of beds at the facility by 80. (2) Acquisition of expedient to (1) Jail project. The material weakness in the compliance reports that the necessary. Debt payments level principal through the Limited Obligation Bonds various parcels of land for the 312 acre Apple Creek increase capacity to purchase price for account reconciliations were not completed timely. service will be paid with term of the loan. Equipment financed Series 2019A (TAX-EXEMPT) Corporate Center for economic development avoid overcrowding at the land was The County has engaged Fiscal staff and has created revenues to the Capital on a 7 year term and the other projects Series 2019B (TAXABLE) purposes. (3) Construction and purchase of jail. (2) increase determined by using a plan to bring reconciliations up to date and avoid Reserve Fund. for 20 years. G.S.160A-20 infrastructure and equipment to upgrade the County's economic development the prevailing market this issue going forward. The County's response is Limited Obligation Bonds ViPER system. opportunities. (3) rate of $25k per considered satisfactory. Publicly Offered Replace outdated public acre. The radio safety radio system. infrastructure and Expected Ratings: S&P: ; Moody's: ; Fitch equipment is piggy Expected Rate: backed on a State Effective Interest Cost (TAX-EXEMPT): 2.770% contract. Effective Interest Cost (TAXABLE): 3.890% Expected Sources and Uses of Funds: Expected Amount (TAX-EXEMPT) $ 23,200,000 Series 2019A Series 2019B Expected Amount (TAXABLE) $ 8,800,000 Sources: TAX-EXEMPT TAXABLE TOTAL Expected Underwriters Fee/$1,000: Par Amount $ 20,740,000 $ 8,550,000 $ 29,295,000 APPROVALS Original Issue Discount $ (64,671) $ (64,671) Amount Not To Exceed: Premium $ 2,632,377 $ 2,632,377 Approval rate not to exceed (TAX-EXEMP 3.600% Total Sources $ 23,307,706 $ 8,550,000 $ 31,862,706 Approval rate not to exceed (TAXABLE): 4.600% Final Maturity not beyond: 2039 Uses: New Money Projects FINANCING TEAM Jail Infill $ 10,000,000 $ 10,000,000 Bond Counsel: Robinson Bradshaw & Hinson, P.A. Radio Infrastucture $ 8,000,000 $ 8,000,000 Financial Advisor: Davenport & Company LLC Radio Equipment $ 5,000,000 $ 5,000,000 Underwriter: RW Baird Apple Creek $ 8,424,688 $ 8,424,688 Underwriter's Counsel: Pope Flynn, LLC Costs of Issuance $ 197,092 $ 84,685 $ 281,777 Trustee: U.S. Bank N.A. Underwriter's Discount $ 110,614 $ 45,627 $ 156,241 Total Uses $ 23,307,706 $ 8,555,000 $ 31,862,706 Installment financing agreement is the necessary vehicle for this financing. Municipal Building 220,182 $ 10,183,076 1/22/2019 $ 190,000,000 $ 14,932,108,747 $ 257,433,473 $ % 3.06% $ 2,032 $ 2,078 Telecommunications $ 13,237,999 Land Acquisition $ 8,578,924 $ 32,000,000 MISCELLANEOUS: City of Mount Holly (ACTION ITEMS): The City of Mount Holly and the following fire department have requested approval of an annexation payment schedule developed in accordance with G.S. 160A-31.1, whereby the City will make lump sum payments for the City's proportionate share of outstanding debt as follows: Volunteer Fire Department Effective Annexation Date Payment iod Reimbursement Lucia-Riverbend VFD 2019 $13, Lucia-Riverbend VFD 2019 $46, The City received a unit letter due to deficiencies in internal controls as well as expenditures made in the Water & Sewer fund that exceeded amounts authorized by budget. A unit visit was made on

3 UNITS WITH AUDIT LETTERS PAGE 3 OF 17 NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY CITY OF REIDSVILLE Construction of a new anaerobic basin and mechanical Necessary and Cost estimates The City received a unit letter due to the Garage and The projection of net Loan from State of North Carolina Sewer mixers in front of the existing aeration basin where a pre- expedient to replace provided by McGill Insurance Funds owing the General Fund. The total revenues prepared by Term: 20 years $3,963,089 anoxic basin will be created by installation of a baffle wall. return & waste pumps Associates, PA. receivable amount appears to distort the financial the unit indicates that The rate, as established under G.S. 159G-22 The existing fixed floor diffused air aeration system will be that are over 20 years condition of the General Fund since the Garage and future revenues will be this program for the respective Revolving Loan modified to remove air from the portion of that basin to be old. The proposed Insurance Funds do not appear to be able to repay adequate to cover the loan, State or federal, is not to used for anoxic treatment. The existing mixers will be improvements will the amount. A unit visit was made on cost of operations and exceed 4%. used to keep solids suspended in the anoxic zone. The provide nutrient debt service. proposed improvements will not increase capacity, but removal for the facility Water: $14.60 provide additional treatment capabilities needed to meet to maintain compliance Sewer: $36.23 the promulgated limit for Total Nitrogen. with the mass based limits for phosphorus and nitrogen. ROWAN COUNTY Renovate interior classrooms and office at G.W. Carver Necessary and Bids are in hand. The County received a unit letter because of a finding No tax increase is Bank: First National Bank $1,300,000 Elementary and install new turf and track surfaces at expedient to repurpose in the Human Services program in the Medicaid required. Debt Amount $ 1,300,000 G.S. 160A-20 A.L. Brown High for the Kannapolis City School system. space for a career and Cluster resulting in a modified opinion in the federal service will be paid Approval Rate: 2.67% Financing Agreement technical education awards report. This is a repeat finding from The from revenues to the Term (years): 5 Private Placement simulation lab and to County respoded with a detailed corrective action General Fund. Market Rate: 2.10% Expected Sources and Uses of Funds: enhance the safety plan. The response was considered satisfactory. Payment Semi-annual principal and interest Sources: and fair play for Bank Loan $ 1,300,000 students, coaches and Bank placement will not be rated. Current G.O. ratings: Total Sources $ 1,300,000 fans. S&P: AA- Moody's: Aa2 Uses: Fitch AA Project Fund $ 1,300,000 Total Uses $ 1,300,000 Installment purchase contract is more timely than issue of G.O. Bonds. Schools 141,917 $ 1,300,000 3/4/2019 $ - $ 12,460,000,000 $ 65,542,459 $ % 0.54% $ 462 $ 471 TOWN OF WHITE LAKE Replacement or rehabilitation of 6105 LF of 6", 8", 10", 12" Necessary and Cost estimates The Town received a unit letter due to a negative The projection of net Loan from State of North Carolina Sewer and 15" vitrified clay pipe gravity sewer, 33 manholes and expedient because the provided by cash flow in the Water & Sewer Fund as well as revenues prepared by Term: 20 years $2,037, sewer services. In addition, the LS #1 wetwell will be infrastructure is 50 Engineering actual revenues in both the General and Water & the unit indicates that The rate, as established under G.S. 159G-22 rehabilitated, repairs will be made to the waste water years old, operates well Services PA. Sewer Fund were materially less than estimated future revenues will be this program for the respective Revolving Loan treatment plant (WWTP) bar screen, grit removal system, past its useful life and is revenues. The Town responded satisfactorily. adequate to cover the loan, State or federal, is not to and headworks, and the WWTP influent and discharge in failing condition. cost of operations and exceed 4%. pipes will be replaced. Notices of Violations debt service. have been received by Water: $19.85 the Town due to Sewer: $29.26 sanitary sewer overflows.

4 FINANCING AGREEMENTS PAGE 4 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE ALAMANCE COMMUNITY Installation of energy conservation measures Necessary and expedient Cost estimates and No major No tax increase is Vendor: Piedmont Service Group COLLEGE (ECMs) at the community college for the to help the Community guaranteed savings deficiencies or no anticipated. Energy Lender: The initial direct lender will be the vendor, $2,512,283 purpose of increased efficiency and energy College become more reviewed by the defaults were savings will service Piedmont Service Group, with an immediate G.S. 160A-20 savings. energy efficient and professional noted per the 2016 the debt. assignment for the term of the loan to Installment Purchase maintaining needed engineering firm of annual report (the Sterling National Bank Guaranteed Energy Savings Total est. Cost: $3,663,107 infrastructure by installing Celtic Energy, Inc. last audited report Amount: $2,409,871 ($2,512,283 with capitalized Contract (GESC) Total Guaranteed Savings: $3,664,981 new equipment and available based on interest accrued during construction) Private Placement Total est. Savings: $4,120,213 fixtures, and provision of the biannual audit Term: 16 Years; Monthly Payments sized other beneficial ECMs. cycle.) to accommodate the savings realization pattern. The term of the GESC is 15 years. Rate: 3.950% CALDWELL COUNTY Partial demolition, reconstruction, renovation, Necessary and Bids are in hand. No deficiencies or No tax increase is Bank: Regions Capital Advantage, Inc. $12,300,000 equipping and furnishing of Granite Falls Middle expedient to modernize defaults noted. required. Debt Amount $ 12,300,000 G.S. 160A-20 School. and expand the Middle service will be paid Approval Rate: 3.040% Financing Agreement School. from sales tax Term (years): 15 Private Placement revenues. Market Rate: 2.90% Payment Annual principal and interest Expected Sources and Uses of Funds: Sources: Bank placement will not be rated. Current G.O. ratings: Bank Loan $ 12,300,000 S&P: N/A Total Sources $ 12,300,000 Moody's: N/A Uses: FINANCING TEAM Project Fund $ 12,300,000 Bond Counsel: Parker Poe Adams & Bernstein LLP Total Uses $ 12,300,000 Financial Advisor: First Tryon Advisors Bank Counsel: Womble Bond Dickinson (US) LLP Installment purchase contract is more timely than issue of G.O. Bonds. Schools 79,594 $ 12,300,000 3/4/2019 $ - $ 6,907,301,587 $ 31,602,869 $ % 0.64% $ 397 $ 552

5 FINANCING AGREEMENTS PAGE 5 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE CITY OF CHARLOTTE (1) (a) Renovations and improvements to the Necessary and expedient to The Guaranteed No major No tax increase is Structure: Annual principal and semi-annual interest payments $142,500,000 Convention Center and (b) the acquisition of a allow the City to carry out Maximum Price (GMP) deficiencies. No necessary. Debt following straight line amortization. Certificates of Participation condominium interest (meeting and ballroom public functions to the City has been presented defaults noted. service will be paid from Approximate level realization of savings over life of the Series 2019 space) in the Hotel and Conference Center residents and to avail by the CMAR for the to the Municipal Debt original COPs The original term of the financing has not been Construction/ Refunding constructed by the Foundation of the UNC themselves of lowered Convention Center Service Fund. Debt extended. G.S.160A-20 Charlotte, Inc. (2) Current refunding of 2009B financing costs. work. The refunding of service for the Limited Obligation Bonds Certificates of Participation (COPs). Current the COPs is current in refunding's is already Expected Ratings: S&P: AA+; Moody's: Aa2; Fitch AA+ Publicly Offered capital market conditions indicate an type and all material budgeted. and if a an Expected Rate: aggregate net present value savings (NPV) of funds requirements NPV savings of Effective Interest Cost: 3.64% approximately $3,552,244 or % of the and related amounts % is generated, Expected Underwriters Fee/$1,000: $ 5.00 refunded balance. are known. it will result in an Refunding Candidate: average annual APPROVALS taining to the Series 2009B refunded bonds: savings of Amount Not To Exceed: $ 142,500,000 Originally issued $ 30,620,000 approximately Approval rate not to exceed: 4.75% Outstanding currently $ 23,580,000 $105,000 for the first Final Maturity not beyond: 2049 Balance to be refunded $ 23,580,000 fiscal year and approximately FINANCING TEAM Expected Sources and Uses of Funds: $285,000 for the Bond Counsel: Parker Poe Adams & Bernstein LLP Refunding Series reaming fiscal years. Financial Advisor: DEC Associates Inc. Sources: New Money 2009B Total Financial Consultant: Waters and Company LLC Par Amount $ 102,270,000 $ 19,270,000 $ 121,540,000 Underwriter: Wells Fargo Securities (Senior Mgr.); Premium $ 16,637,578 $ 3,535,823 $ 20,173,401 Bank of America Merrill Lynch (Co-Mgr.) Accrued Interest $ - $ 425,287 $ 425,287 Underwriter's Counsel: McGuire Woods LLP Total Sources $ 118,907,578 $ 23,231,110 $ 142,138,688 Trustee: US Bank N.A. Uses: Installment financing agreement is the necessary vehicle for this Project Costs: $ 118,000,000 $ - $ 118,000,000 financing. Series 2009B Refunding $ - $ 23,076,609 $ 23,076,609 Costs of Issuance $ 396,228 $ 58,151 $ 454,379 Underwriter's Discount $ 511,350 $ 96,350 $ 607,700 Total Uses $ 118,907,578 $ 23,231,110 $ 142,138,688 Convention Center 818,480 $ 142,500,000 3/25/2019 $ 405,849,000 $ 95,877,161,000 $ 1,635,464,000 $ % 2.25% $ 2,494 $ 2,639 Mecklenburg Co. $ 1,742

6 FINANCING AGREEMENTS PAGE 6 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE CITY OF HIGH POINT Purchase of public safety communication Necessary and expedient The City has provided No deficiencies or No tax increase is Bank: Banc of America Public Capital Corp $7,000,000 equipment, public safety vehicles and public to replace obsolete alarm the relevant purchase defaults noted. required. Debt Amount $ 7,000,000 G.S. 160A-20 service vehicles. system as well as vehicles agreements. service will be paid Approval Rate: 2.69% Financing Agreement needed for public safety from revenues to the Term (years): 10 Private Placement and public service. General Fund. Market Rate: 2.20% Expected Sources and Uses of Funds: Payment: Annual principal and interest Sources: Bank Loan $ 7,000,000 Bank placement will not be rated. Current G.O. ratings: Cash Contribution $ 19,394 S&P: AAA Total Sources $ 7,019,394 Moody's: Aa1 Fitch AA+ Uses: Equipment & Vehicle Purchase $ 7,001,894 FINANCING TEAM Cost of Issuance $ 17,500 Bond Counsel: Womble Bond Dickinson (US) LLP Total Uses $ 7,019,394 Installment purchase contract is more timely than issue of G.O. Bonds. Equipment 113,125 $ 7,000,000 N/A $ - $ 9,866,751,953 $ 109,685,142 $ % 1.18% $ 970 $ 1,031 Public Vehicles Guilford Co. $ 1,556 CITY OF KING Refinancing of the Belt Filter Press project Necessary and expedient A bank proposal is in No major deficiencies. The projection of net Bank: BB&T $1,038, originally funded with a 2010 loan provided by to protect themselves from hand and payoff No defaults noted. revenue prepared by Approval Rate: 3.18% Refinance First National Bank, formerly known as New the upward trending rates. amount is known. the unit indicates that Term: 10 Years G.S. 160A-20 Bridge Bank. The current interest rate is future revenues will be Market Rate: 3.00% Financing Agreement 2.95% with a reset balance in 2020 at a rate adequate to cover the Payment: Annually Private Placement not to exceed prime plus 2% with a ceiling rate cost of operations and S&P: N/A of 8% not to exceed 20 years. The proposed debt service. Moody's: N/A rate is for 3.18%. Water: $23.83 Sewer: $93.30 Installment purchase contract is more timely than issue of G.O. Bonds Water 6,977 $ 1,038,266 3/4/2019 $ - $629,765,511 13,680,140 $ % 2.17% $ 1,961 $ 1,961 Stokes County $ 783

7 FINANCING AGREEMENTS PAGE 7 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE LINCOLN COUNTY (1) Construction of a new West Lincoln Library. Necessary and expedient Bids are in hand for No deficiencies or No tax increase is Bank: Region's Bank $11,600,000 (2) Construction of a Communications Center. to meet growing demand the library, defaults noted. required. Debt service Amount $ 11,600,000 G.S. 160A-20 (3) Renovation of Senior Services Center. (4) for County services. communications for the municipal Approval Rate: 3.04% Financing Agreement Construction a new Convenience Center on center, and Senior buildings will be paid Term (years): 15 Private Placement Optimist Club Rd. Center. Convenience from revenues to the Market Rate: 2.80% site is based upon General Fund. Payment Annual principal and semi-annual interest engineer's estimates. Debt service for the Expected Sources and Uses of Funds: Collection Center will be Bank placement will not be rated. Current G.O. ratings: Sources: paid from the Solid S&P: AA+ Bank Loan $ 11,511,000 Waste Fund. No Moody's: Aa2 Total Sources $ 11,511,000 increase in rates is Fitch AA+ required. Uses: FINANCING TEAM Project Fund: Bond Counsel: Robinson Bradshaw Library $ 4,198,000 Financial Advisor: Davenport & Company LLC Comm. Center $ 4,237,362 Senior Center $ 900,000 Installment purchase contract is more timely than issue Convenience Center $ 2,000,000 of G.O. Bonds. Cost of issuance $ 175,638 Total Uses $ 11,511,000 Municipal Buildings 89,000 $ 9,553,308 3/4/2019 $ - $ 8,550,000,000 $ 88,144,161 $ % 1.17% $ 990 $ 1,121 Solid Waste Disposal $ 2,046,692 $ 11,600,000 CITY OF RAEFORD Installation of an AMI water meter reading system anecessary and Bids in hand. In an audit review, the CThe projection of net Bank: BB&T $1,300,000 replacement of approximately 2800 mechanical watexpedient to replace entered into a loan withorevenues prepared by Approval Rate: 2.63% Water meters with digital water meters. aging and antiquated The loan requiredthe unit indicates that Term: 10 Years G.S.160A-20 meters with more is currently seeking to obfuture revenues will be Market Rate: 2.55% Installment Contract accurate technology and on adequate to cover the Payment: Annually Private Placement reduce operating costs cost of operations and associated with the debt service. S&P: A manual read meters. Water: $15.19 Moody's: A3 Sewer: $23.40 Installment purchase contract is more timely than issue of G.O. Bonds Water 4,983 $1,300,000 2/4/2019 $ - $ 489,463,060 $ 1,172,459 $ % 0.51% $ 235 $ 496 Hoke County $569

8 FINANCING AGREEMENTS PAGE 8 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE SURRY COUNTY Renovation, demolition and new construction Necessary and expedient Bids in hand. No major No tax increase is Structure: Annual principal and semi-annual interest payments $26,000,000 at 3 County elementary schools and HVAC to perform much needed deficiencies. No necessary. Debt Debt service follows approximately principal level amortization. Limited Obligation Bonds replacement at Mount Airy City Schools. renovations and to meet defaults noted. service will be paid from Series 2019 code standards to ensure revenues to the Expected Ratings: S&P: A+; Moody's: Aa3 G.S.160A-20 safety and security of all Capital Improvement Expected Rate: Limited Obligation Bonds children. Fund. Effective Interest Cost: 3.074% Publicly Offered Expected Underwriters Fee/$1,000: $ Expected Sources and Uses of Funds: APPROVALS Sources: Amount Not To Exceed: $ 26,000,000 Par Amount $ 22,250,000 Approval rate not to exceed (EIC) : 4% Premium $ 3,400,965 Final Maturity not beyond: 2039 Total Sources $ 25,650,965 FINANCING TEAM Uses: Bond Counsel: Womble Bond Dickinson (US) LLP Project Costs: Financial Advisor: DEC Associates Inc. Dobson ES $ 9,376,858 Underwriter: PNC Capital Markets LLC Franklin ES $ 7,122,567 Underwriter's Counsel: Parker Poe Adams & Bernstein LLP Mountain Park ES $ 8,002,324 Trustee: Branch Banking & Trust Mt. Airy HVAC $ 798,251 Costs of Issuance $ 250,840 Installment financing agreement is the best vehicle for this Underwriter's Discount $ 100,125 financing. Total Uses $ 25,650,965 Schools 72,224 $ 26,000,000 1/16/2018 $ - $ 5,157,146,446 $ 37,475,227 $ % 1.23% $ 519 $ 879 TOWN OF WAKE FOREST This project consists of the construction of South Necessary and expedient Bids in Hand No Major deficiences. No tax increase is Bank: First Bank Streetscape Improvement Project White Street from East Holding Avenue to Elm due to the Town's significant No defaults noted. anticipated. General Approval Rate: 3.26% $5,500,000 Avenue and East Owen Avenue from South growth. The Town recognizes Fund revenues will Term: 15 years G.S. 160A-20 White Street to Brooks Street. bringing all streets to a provide for debt service. Market Rate: 3.10% Installment Purchase Contract higher standard and to Payment: Annually preserve the infrastructure S&P: N/A is expected by the citizens Moody's: N/A of Wake Forest. Installment purchase contract is more timely than issue of G.O. Bonds Street 45,348 $ 5,500,000 3/19/2019 $ - $5,253,524,715 50,187,066 $ % 1.06% $ 1,107 $ 1,228 Wake County $ 2,529

9 FINANCING AGREEMENTS PAGE 9 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE VILLAGE OF WHISPERING This project consists of the rehabilitation to the Necessary and expedient Bids in hand. No major deficiencies. No tax increase is Bank: First Bank PINES Spring Valley Spillway Dam and renovation to the because the current fire No defaults noted. anticipated. General Approval Rate: 3.26% Dam Rehab./Fire Station Renovation Fire Station for the Village of Whispering Pines. station is inadequate to Fund revenues will Term: 15 years $2,500,000 provide appropriate provide for debt service. Market Rate: 3.10% G.S. 160A-20 municipal services to Payment: Annually Installment Purchase Contract Whispering Pines residents. S&P: N/A The Spring Valley dam Moody's: N/A has a high hazard classification, and spillway rehabilitation is needed to Installment purchase contract is more timely than issue repair areas of the spillway of G.O. Bonds that have shown deterioration. Flood and Erosion Control 3,262 $ 1,500,000 3/13/2019 $ - $501,784,239 2,640,871 $ % 1.02% $ 810 $ 1,576 Fire Station $ 1,000,000 Moore Co. $ 764 $ 2,500,000

10 GENERAL OBLIGATION BONDS LOCAL GOVERNMENT COMMISSION APRIL 2, 2019 PAGE 10 OF 17 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY CEDAR POINT, TOWN OF Aquisition of land for Town park, consisting of Necessary and expedient The Town has an No major deficiencies. A tax increase of Approvals: Moody's: N/A $2,250,000 approximately acres with extensive water to meet the Town needs, independent app- No defaults noted. 5.3 is the maximum Amount not to exceed: $2,250,000 S&P: N/A General Obligation Parks & frontage. with approval by Town voters raisal for the land rate anticipated. Fitch: N/A Recreation Bond on November 6, with a market value Rate: Not to exceed 3.45% (fixed) (Private Placement) of $2,827,000. The Term: Not to exceed twenty years G.S Town will contribute $327,000 of cash Sale: Bank Placement and has been Sale Date: N/A approved for a State grant of $250,000. Bond Counsel: McGuireWoods LLP The Town will ad- Purchaser: Sterling National Bank vance $250,000 Lenders Counsel: Gilmore & Bell towards purchase, with reimbursement from the grant proceeds in September Capita Purpose Estimated Census Amount Election Date & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Parks & Recreation 1,457 $ 2,250,000 11/6/2018 $ 2,500,000 $ 370,920,000 $ - $ % 0.61% $ - $ 1,544 Carteret County $ 557

11 GENERAL OBLIGATION REFUNDING BONDS LOCAL GOVERNMENT COMMISSION PAGE 11 OF 17 NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY FAYETTEVILLE, CITY OF All or portion of bonds to be refunded: Necessary and expedient Amount is adequate, No major deficiencies. A tax increase is not Structure: Moody's: Aa1 $2,600,000 $2,500,000 General Obligation Public to provide savings on the with other available No defaults noted. anticipated. Current Refunding. Net present value S&P: AA+ General Obligation Refunding Improvement Bonds, Series 2005, sold outstanding issue. funds of the City, savings of $143,473 for the 2005 Bonds. (Expected Ratings) Bonds June 1, 2005 at a TIC of % and a to defease debt. G.S present average interest cost of %. Net present value savings at 5.74% of the refunded bonds. The refunding bond will be structured with no extensions of maturities (final maturity June 1, 2025) and with approximately level annual gross savings of $23,912. Competitive Sale Sale Date: May 7, 2019 APPROVALS Amount not to exceed: $2,600,000 Co-Bond Counsel: Womble Bond Dickinson (US) LLP and The Charleston Group Financial Advisor: First Tryon Advisors Capita Purpose Estimated Census Amount Election Date & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Refunding 207,583 $ 2,600,000 N/A $ 35,000,000 $ 13,773,666,675 $ 78,816,731 $ % 0.83% $ 548 $548 Cumberland County 0.43%

12 GENERAL OBLIGATION REFUNDING BONDS LOCAL GOVERNMENT COMMISSION PAGE 12 OF 17 NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY FUQUAY-VARINA, TOWN All or portion of bonds to be refunded: Necessary and expedient Amount is adequate, No major deficiencies. A tax increase is not Structure: Moody's: Aa1 $3,650,000 $3,250,000 General Obligation Public to provide savings on the with other available No defaults noted. anticipated. Current Refunding. Net present value S&P: AAA General Obligation Refunding Improvement Bonds, Series 2009, sold outstanding issue. funds of the Town, savings of $148,925 for the 2009 Bonds. Fitch: N/A Bonds October 2009 at a TIC of % and a to defease debt. G.S present average interest cost of 3.585%. Net present value savings at 4.58% of the refunded bonds. The refunding bond will be structured with no extensions of maturities (final maturity August 1, 2029) and with approximately level annual gross savings of $14,893. Competitive Sale Sale Date: April 30, 2019 APPROVALS Amount not to exceed: $3,650,000 Bond Counsel: Sanford Holshouser Financial Advisor: Davenport & Company LLC Escrow Agent: US Bank, N.A. Verification Agent: Bingham ARS Capita Purpose Estimated Census Amount Election Date & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Refunding 25,548 $ 3,650,000 N/A $ 8,650,000 $ 3,377,000,000 $ 44,461,000 $ % 1.44% $ 1,883 1,899 Wake County 1.49%

13 REVENUE BONDS PAGE 13 OF 17 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION CITY OF CHARLOTTE HOUSING AUTHORITY Charlotte City Council The developer has The developer has provided No defaults Direct Purchase Term: Approximately 16 years after 28 months construction MULTIFAMILY HOUSING REVENUE BONDS has found that the provided a Phase I 20-year cash flow noted. No major (Evoke Living at Sugar Creek), Series 2019 project is necessary to Environmental Site projections that show debt deficiencies. Purchaser will 40 year amortization continue to provide an Analysis, and a Market service coverage for the restrict any bond Private Placement G.S ; ; adequate supply of Study, along with a bonds will range from transfers to an affordable housing for construction contract for 1.15X to 1.33X. "Approved Buyer" Interest Rate: Construction Phase: 1 month LIBOR +2.00%; residents of the City. the project which supports defined as current indicative rate 4.46% Not to exceed $18,000,000. The proceeds of the bonds will the valuations thereof. Accredited Investors manent Phase: 15 yr. LIBOR SWAP+3.35% * (1- the Federal Tax be used to provide a loan to Sugar Creek Housing, LLC a The development will as currently defined Rate) current indicative rate 5.02% North Carolina limited liability company, or an affiliate, for be a mixed income in SEC Reg. D or a Structure: Construction phase-interest only approximately the acquisition, construction and equipping of development with The issuer has found that The lender has performed qualified institu- level debt service thereafter approximately 180 apartment units located in the City of 100% of the units the debt to be incurred in its own credit review. tional buyer as Charlotte on 9.82 acres. The apartments are targeted for dedicated to connection with the defined in Rule 144A family tenants of the City of Charlotte. The apartments will households with project is adequate but The NCHFA of the Securities Act APPROVALS be built in accordance with the specifications provided in incomes at or below not excessive and the commissioned a market of 1933, but Amount: Not to exceed $18,000,000. the application for low-income housing tax credits (LIHTC) 60% of the area fees are reasonable. In analysis which concluded excluding individual Final Maturity: Not to exceed December 31, 2061 as approved by the NC Housing Finance Agency (NCHFA). median income for the addition, the Rental sufficient support for the investors, including Interest Rate: Tax-exempt not to exceed 10.0% Charlotte area. Investment section of the introduction and high net worth NCHFA has reviewed this absorption of affordable individuals. This will exceed HUD information and has found rental units within the FINANCING TEAM requirements it to be reasonable. market area at the Each transferee will Bond Counsel: McGuireWoods LLP restricting 40% of the proposed affordable rental execute a letter Trustee: Regions Bank 180 units to residents rates. stating its full intent Borrower: Sugar Creek Housing, LLC with incomes restricted to retain the bonds Borrower's Counsel: Ellinger & Carr PLLC to 60% of area median for its own portfolio Developer: CSE Communities & Mosaic Development Group Sources of Funds income. and stipulating that Purchaser: Western Alliance Business Trust Ist Mortgage Note $ 14,650,228 any transfer of the Servicer: R4 Servicer LLC City HTF Loan $ 5,300,000 bonds must be Servicer's Counsel: Kutak Rock LLP Federal LIHTC Equity $ 10,598,596 restricted to an LIHTC Equity Investor: Boston Financial Investment Management, L.P. Deferred Developer Fee & Interim Sources $ 411,747 Approved Buyer. LIHTC Equity Investor Legal Counsel: Nixon Peabody LLP Total Sources $ 30,960,571 Sale of the bonds will not conflict with the sale of any other revenue bonds. Uses of Funds Construction and Land Acquisition $ 24,993,250 Fees and soft costs $ 2,665,000 Costs of Issuance $ 2,751,857 Interest, Reserves and Other $ 550,464 Total Uses $ $ 30,960,571

14 GARVEE Refunding Bonds PAGE 14 OF 17 ANTICIPATED DEBT PROJECT GARVEE Program FINANCIAL RESULTS FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION STATE OF NORTH CAROLINA Necessary and expedient to Project costs are The State Treasurer has No major deficiencies. Anticipated Structure: The Series 2019 GARVEEs are Grant Anticipation Revenue Vehicle Bonds accelerate transportation estimated using made the following No defaults noted. Ratings: anticipated to be fixed rate with a 15 year (GARVEEs) projects across the State NCDOT's standard determination: A2 (Moody's) maturity, with approximately level debt service. Total Amount (Par) not to exceed $ 600,000,000 (see Program Description) estimation process. AA (S&P) and an approximate years average life. (Preliminary) After issuance of the 2019 A+ (Fitch) GARVEEs Series 2019 The amounts proposed GARVEEs, the outstanding Sources of Funds:* are adequate and not principal amount of GARVEE Public offering in After the issuance of the 2019 GARVEEs debt Par Amount $ 600,000,000 excessive. Approximately debt ($1,046.6 million) $5,000 service on the GARVEE program is anticipated to Net Reoffering Premium $ 90,758,279 $86 million will be used does not exceed the total denominations peak at approximately $131.6 million in FY $ 690,758,279 to reimburse DOT for amount of federal through a and declining thereafter. project costs already paid, transportation funds negotiated sale. Uses of Funds:* and the remainder is authorized for the State Interest Rate: Fixed Deposit to Project Fund $ 686,558,279 expected to be expended in the prior federal Fixed over life of bonds Financing Costs 1 $ 4,200,000 within two years. fiscal year ended 9/30/2018 Expected Interest Cost (All-In TIC): 3.01% $ 690,758,279 ($1,135.8 million); Total 2019 GARVEE Amount not to exceed: $600,000,000 or APPROVALS 2019 GARVEEs PROGRAM DESCRIPTION After the issuance of the 2019 Maturity: Not to exceed 12/31/34 GARVEES authorized by N.C.G.S. GARVEEs, the maximum Interest Rate: Not to exceed 6% (12b), codified by S.L , as amended. annual principal and interest Financing Costs: Not to exceed $10/1,000. Program originally approved by COS ($131.6 million) does not exceed and LGC in This will be the 7th issue. 15% of the expected average Estimated approximate total program annual federal revenue in the FINANCING TEAM size outstanding at any one time: $ Billion most recently adopted State Sr. Managing Underwriter: Bank of America Merrill Program size is legislatively limited Transportation Improvement Lynch based on Federal Highway Fund allocations. Plan (approximately $166.1 million). Financial Advisor: Hilltop Securities GARVEEs are revenue bonds Co-Bond Counsel: Nexsen Pruet, PLLC solely supported by a pledge of federal The Francis Law Firm, PLLC highway funds. The Federal Aid Highway Program currently expires on September 30, The State's financial advisor believes that Co-Disclosure Counsel: Hunton Andrews Kurth LLP The proceeds are used to accelerate the risk of expiration without extension or short-term interim authorization is unlikely. Since 2003, Congress has Moore & Van Allen PLLC eligible highway project construction. passed multiple extensions of each existing program authorization until adoption of the next reauthorization, as follows: Underwriters' Counsel: McGuireWoods LLP The GARVEE program has been designed to be 1. The current authorization, FAST act was enacted December 2015 and is set to expire September 30, Trustee: US Bank "evergreen", with multiple issues of GARVEEs providing 2. The prior authorization, MAP-21 was enacted July The extension of the authorization to May 31, 2015 Trustee Counsel: Internal Counsel funding for a group of projects on a cash flow basis. was passed prior to the original expiration of September 30, All projects are to be included in the State's Transportation 3. The next previous authorization, SAFETEA-LU was signed in August 2005 with an original expiration date of August Improvement Plan and designated as eligible for GARVEE Congress passed 9 separate interim extensions of the authorization until MAP-21 was enacted in funding under federal agreements. 4. The next previous authorization, TEA-21 was set to expire in Congress passed 12 extensions over See next page for the current list. 680 days prior to the enactment of SAFETEA-LU. * Preliminary For North Carolina, risk of delay is also mitigated by the GARVEE legal structure (first payment not due until 1 Includes Costs of Issuance and Underwriter's Discount. September) and DOT's policy regarding set-aside provisions. The State's financial advisor and the underwriters of the GARVEEs believe the status of the reauthorization will not negatively impact the marketability of the GARVEEs due to the level of sophistication of the potential investor universe and their familiarity with the risks associated with the federal reauthorization process. CONTINUED ON NEXT PAGE

15 GARVEE Refunding Bonds PAGE 15 OF 17 ANTICIPATED DEBT PROJECT GARVEE Program FINANCIAL RESULTS FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION 2019 GARVEE Preliminary List of Projects Eligible to receive GARVEE funding * (in millions)* US 70 HAVELOCK BYPASS IN CRAVEN COUNTY $ 100,000,000 WINSTON-SALEM NORTHERN BELTWAY, EASTERN SECTION, FROM US-158 TO US-311 6,513,000 FAYETTEVILLE - OUTER LOOP FROM I-95 TO SOUTH OF SR 1118 (PARKTON ROAD) IN ROBESON COUNTY 111,000,000 WINSTON-SALEM - NORTHERN BELTWAY (EASTERN SECTION) FROM US 311 TO SR 2211 (BAUX MOUNTAIN ROAD) 102,000,000 US ,000,000 WINSTON SALEM NORTHERN INTERCHANGE. 75,000,000 I-26 FROM NC 280 TO I-40 IN BUNCOMBE COUNTY 112,000,000 I-26 WIDENING IN HENDERSON COUNTY 65,487,000 I-440/US 1 AT WAKE FOREST ROAD IN WAKE COUNTY 10,000,000 I-795 PAVEMENT REHAB IN WAYNE COUNTY 6,000,000 I-85 PAVEMENT REHAB IN ROWAN COUNTY 10,000,000 US 264 (FUTURE I-587) PAVEMENT REHAB IN GREENE COUNTY 4,000,000 US 264 (FUTURE I-587) PAVEMENT REHAB IN PITT COUNTY 12,000,000 US 70 (FUTURE I-42) PAVEMENT REHAB IN JOHNSTON COUNTY 7,000,000 INTERCHANGE IMPROVEMENTS AT I-40/I-85 AND SR 1007 (MEBANE OAKS ROAD) IN MEBANE 7,000,000 US 17 (FUTURE I-87) PASQUOTANK COUNTYFROM PERQUIMANS COUNTY LINE TO NORTH END OF US 17 BYPASS.PAVEMENT REHABILITATION. 9,000,000 US 321 FROM US 70 IN HICKORY TO US 321A (COMBINED WITH B-4450: TO REPLACE BRIDGE 367 OVER CATAWBA RIVER ON US 321) 30,000,000 UPGRADE I-40 INTERCHANGE WITH SR 1228 (LIBERTY ROAD) 9,300,000 I-40 PAVEMENT REHABILITATION, MAP LOCATION 85 31,000,000 UPGRADE I-40 INTERCHANGE WITH SR 3015 (AIRPORT BOULEVARD) 20,000,000 I-40 PAVEMENT REHABILITATION 10,500,000 I-85 PAVEMENT REHABILITATION 9,800,000 I-485 PAVEMENT REHABILITATION 9,100,000 I-77 PAVEMENT REHABILITATION 7,420,000 I-85 PAVEMENT REHABILITATION 3,500,000 Total $ 800,620,000 * Projects and amounts subject to change.

16 REVOLVING LOAN LOCAL GOVERNMENT COMMISSION PAGE 16 OF 17 NECESSARY AND ADEQUATE NOT DEBT FEASIBLITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY TOWN OF BOONVILLE Development of a new well with a new pump, piping, Necessary and expedient to Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina NA Water building and interconnection; Rehabilitation of 3 existing provide greater security and provided by Municipal defaults noted. revenues prepared by Term: 20 years $796,000 wells; and Installation of a chemical feed system. replace aged equipment with Engineering Services the unit indicates that The rate, as established under G.S. 159G-22 regarding the 3 wells. The new Co., PA. future revenues will be this program for the respective Revolving Loan chemical feed system will adequate to cover the loan, State or federal, is not to provide chemical treatment for cost of operations and exceed 4%. Iron and Manganese. The new debt service. buildings allow for adequate Water: $25.10 separation between the Sewer: $31.92 Chlorine and polyphosphate feed locations. CITY OF GOLDSBORO This project consists of the installation of inclined-plate Necessary and expedient Cost estimated No major deficiencies The projection of net Loan from State of North Carolina N/A Water settlers inside each of the seven (7) existing sedimentation to improve turbidity removal provided by AH No defaults noted. revenues prepared by Term: 20 years $1,797,360 basins at the City's existing Water Treatment Plant to under all flow conditions and Environmental the unit indicates that The rate, as established under G.S. 159G-22 expand the plant capacity from 12.0 million gallons per increase sedimentation basin Engineering, PC future revenues will be this program for the respective Revolving Loan day (MGD) to 14.0 million gallons per day (MGD). and filter capacity. adequate to cover the loan, State or federal, is not to cost of operations and exceed 4%. debt service. Water: $17.16 Sewer: $37.20 TOWN OF RHODHISS Replacement of approximately 4400 LF of 6" clay pipe Necessary and expedient to Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina NA Sewer sewers with new 8" PVC pipe; 8 new manholes; and 15 reduce inflow / infiltration (I/I) provided by West defaults noted. revenues prepared by Term: 20 years $100,000 tap reconnections. New manholes would be constructed and eliminate sanitary sewer Consultants, PLLC. the unit indicates that The rate, as established under G.S. 159G-22 so existing manholes and lines can be abandoned due to overflows (SSOs). future revenues will be this program for the respective Revolving Loan their very close proximity to existing structures. adequate to cover the loan, State or federal, is not to cost of operations and exceed 4%. debt service. Water: $32.78 Sewer: $42.85 TOWN OF STANTONSBURG Construction of a new well of approximately.08 MGD Necessary and expedient to Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina NA Water capacity, complete with a new well house, electrical, provide an alternate water provided by Municipal defaults noted. revenues prepared by Term: 20 years $310,000 piping and site work; and construction of approximately supply for the Town outside Engineering Services the unit indicates that The rate, as established under G.S. 159G LF of 12-inch PVC water main and appurtenances to of the Central Coastal Plain Co., PA. future revenues will be this program for the respective Revolving Loan tie into the County's existing water distribution system. Capacity Use Area.. adequate to cover the loan, State or federal, is not to cost of operations and exceed 4%. debt service. Water: $36.82 Sewer: $53.20

17 MISCELLANEOUS LOCAL GOVERNMENT COMMISSION PAGE 17 OF 17 MISCELLANEOUS: Town of Dublin (ACTION ITEMS): The Town is requesting approval for an increase of additional funds on a State Revolving Loan. The Loan is for the rehabilitation of the Lyons Pump Station for the Town of Dublin. The original Loan was approved November 7, 2017 for $75,500. The Town is requesting an increase of $35,844 for a total loan amount of $111,344. The increase is due to an increase in construction and engineering cost. Town of Lillington The Town of Lillington entered into a two year interim financing agreement with BB&T in March, 2017 for acquisition of land, buildings and renovation of the buildings for use as a Town Hall, Public Works facility and Fire Station. At the end of the two-year term, the loan was to be taken out by long term permanent USDA financing or otherwise be converted to a 15 year traditional installment loan. Due to the project timeline extending past what was originally anticipated, the Town will not be ready by the original deadline. BB&T has agreed to extend the draw period for an additional 3 months, up to June 30, This will give the Town additional time to close on a traditional installment loan.